We are proud to present the latest release of our Sound Business Insights Podcast, Episode 24 – Corporate Governance. This episode on Corporate Governance addresses one of, perhaps, the most overlooked aspect of owning and running a business: corporate governance. Dan Watkins begins with the perspective that a corporate entity, under the law, is essential an entity of its own, like a person. The corporation provides an important protection known as the “corporate veil.” The corporate veil is what keeps the personal assets (and liabilities) of the owner(s) of a business separate from the debts and risks associated with the business. If you do not protect the corporate veil any creditor can pierce the protections of the corporation and come after it’s owners personally for any debt or legal exposure associated with the company itself.
In our Sound Business Insights Podcast, Episode 24 – Corporate Governance Dan explains that corporate governance is the process to maintain a corporation in a proper and legal fashion, in order to protect the company itself as well as the corporate veil. This provides substantial benefits not only for the owner(s) of a company but in the event you wish to sell the business or merge with another entity. Laws change every year, people change, the business changes and this is why it is important to regularly review and update the corporate documents such as an operating agreement in an LLC or the bylaws and shareholders’ agreement in an S Corp or C Corp.
Toward the end of our Sound Business Insights Podcast, Episode 24 – Corporate Governance the conversation turns to risk management and strategic planning as well as the management of the company and it’s employees. The company must have ongoing training, updated policies and procedures and an updated employee handbook to maintain the integrity of the corporate veil. PAGA actions have become much more common here in Southern California and the process of good corporate governance reduces the risks of all litigation, including PAGA actions. Dan discusses the importance of corporate governance in a medical practice or healthcare-related business or Management Services Organization or MSO. The level of complexity in these situations is raised by the requirement to fulfill all regulatory compliance in addition to corporate and employment laws. The conversation closes with the positive impact that corporate governance can have upon the value of the company if it comes time to merge with another business or sell the corporation.
We invite you to listen to our new podcast Episode 24 – Corporate Governance, review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
